Back to top

O'Reilly (ORLY) Raises Share Repurchase Authorization by $1B

Read MoreHide Full Article

O’Reilly Automotive, Inc. (ORLY - Free Report) recently announced that its Board of Directors has raised the share repurchase authorization amount by an additional $1 billion to $9.75 billion. This is in line with the strategy of the Springfield, MO-based specialty automotive retailer to boost its earnings per share.

This additional share buyback authorization of $1 billion is effective for a period of three years, starting Sep 1, 2017.  Notably, last time the company increased the share repurchase authorization by $1 billion to $8.75 billion on May 10, 2017. During the second quarter of 2017, O’Reilly repurchased 3.5 million shares for $852 million, reflecting an average price of $245.26 per share.

O'Reilly is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. As of Jun 30, 2017, O'Reilly operated 4,934 stores across 47 states in the United States.

In the last three months, shares of O'Reilly have underperformed the industry it belongs to. The company’s shares declined 16.3%, whereas the industry lost 11.2%.

O'Reilly currently carries a Zacks Rank #3 (Hold).

A few better-ranked automobile stocks are Toyota Motor Corporation (TM - Free Report) , Volkswagen AG (VLKAY - Free Report) and Daimler AG (DDAIF - Free Report) . While Toyota sports a Zacks Rank #1 (Strong Buy), both Volkswagen and Daimler carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Toyota has a long-term growth rate of 7%.

Volkswagen has a long-term growth rate of 8.9%.

Daimler has an expected long-term earnings growth rate of 2.8%

Zacks' 10-Minute Stock-Picking Secret

Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.

But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.

Learn the secret >>

More from Zacks Analyst Blog

You May Like